Companies like Boeing, Kodak, and IBM are using which of the following for improving the estimating process? 

A. Adjusting estimates based on individual forecasting abilities

B. Benchmarking using the experience of other companies

C. Using time and motion studies

D. Creating historical databases of previous projects

E. All of these are correct

Answer: Creating historical databases of previous projects

Which of the following is not one of the recommended guidelines for developing useful work package estimates? 

A. Estimates should be made by those responsible for the work

B. Use several people to estimate the same work

C. Estimates should be based on normal conditions

D. Estimates should include a normal level of contingency

E. Estimates should be independent of other projects

Answer: D. Estimates should include a normal level of contingency

Which of the following would be considered a direct project cost? 

A. Labor

B. Materials

C. Equipment

D. Both A and B are direct costs

E. A, B, and C are all considered direct costs

Answer: A, B, and C are all considered direct costs

Project costs are typically viewed from all of the following except: 

A. Scheduled

B. Sunk

C. Actual

D. Committed

E. All of these are correct

Answer: sunk

Typical kinds of costs found in a project include 

A. Direct costs

B. Project overhead costs

C. General and administrative costs

D. Only A and B are included

E. A, B, and C are all included

Answer: A, B, and C are all included

The cost to prepare bottom-up estimates will typically run how much more than the costs to prepare the top-down estimates? 

A. About the same

B. About twice as much

C. About three times as much

D. About four times as much

E. About five times as much

Answer: About three times as much

The accuracy of bottom-up estimates will typically be in the range of 

A. Minus 50% to plus 50%

B. Minus 0% to plus 75%

C. Minus 20% to plus 60%

D. Minus 35% to plus 35%

E. Minus 10% to plus 30%

Answer: Minus 10% to plus 30%

The accuracy of top-down estimates will typically be in the range of 

A. Minus 50% to plus 50%

B. Minus 0% to plus 75%

C. Minus 20% to plus 60%

D. Minus 35% to plus 35%

E. Minus 10% to plus 30%

Answer: Minus 0% to plus 75%

Which of the following would be the best method for projects where the final product is not known and the uncertainty is very large? 

A. Function point

B. Template

C. Learning curve

D. Phase estimating

E. Apportion

Answer: Phase estimating

The approach that begins with a top-down estimate for the project and then refines estimates as the project is implemented is known as ______ method. 

A. Function point

B. Template

C. Learning curve

D. Phase estimating

E. Apportion

Answer: Phase estimating

Which of the following is not one of the bottom-up approaches to estimating project time and cost? 

A. Parametric procedures applied to specific tasks

B. Estimates for the WBS work packages

C. Learning curve

D. Template method

E. All of these are bottom-up approaches

Answer: Learning curve

Learning curves are more likely to apply in situations where most of the costs are 

A. Materials

B. Labor

C. Overhead

D. Evenly spread over materials, labor, and overhead

E. All of these are equally likely situations for learning curves

Answer: labor

Sean is forecasting the time and cost of developing a customized software program by looking at the number of inputs, outputs, inquires, files, and interfaces. Which of the following methods is he using? 

A. Ratio

B. Template

C. Apportion

D. Function point

E. Learning curve

Answer: Function point

Jose is forecasting project time and cost for constructing a new building by multiplying the total square footage by a given dollar amount. Which of the following methods is he using? 

A. Ratio

B. Template

C. Apportion

D. Function point

E. Learning curve

Answer: ratio

Which of the following methods is not considered a top-down approach to estimating project time and cost? 

A. Ratio

B. Template

C. Apportion

D. Function point

E. Learning curve

Answer: Template

____ estimates are most likely to use low cost, efficient methods. 

A. Apportion

B. Ratio

C. Top-down

D. Bottom-up

E. All of these are equally likely

Answer: Bottom-up

Top-down estimates are most likely to occur during the ______ phase. 

A. Concept

B. Planning

C. Execution

D. Delivery

E. All of these are equally likely

Answer: concept

Which of the following is a good condition for bottom-up estimating? 

A. Strategic decision making

B. Internal, small project

C. Fixed price contract

D. High uncertainty

E. Both C and D are good conditions for bottom-up estimating

Answer: Fixed price contract

Which of the following is a good condition for top-down estimating? 

A. Cost and time important

B. Fixed price contract

C. Customer wants details

D. Internal, small project

E. All of these are good conditions for top-down estimating

Answer: Internal, small project

Janet is forecasting how much money her department needs to support a new project. She estimates that two people and $25,000 in expenses will cover her needs. Because management typically insists on reducing forecasts by 20 percent, she increases her estimates to allow for that reduction. Which of the following factors is illustrated in this situation? 

A. Padding estimates

B. Planning horizon

C. Project structure

D. People

E. Organization culture

Answer: Padding estimates